Monday, September 5, 2011

Investopedia: UTi Seems To Be Pricing In The Bad News

As investors increasingly fret about the health of the global economy and the likelihood of another recession, the transports have started to flash some warning signs. Railroad companies like Union Pacific (NYSE:UNP) and CSX (NYSE:CSX) have seen carload traffic slow, while drybulk and container shipping companies see rates carve out new bottoms.

Curiously, the stocks of asset-heavy companies like rails and air freight have held up better than many of the asset-light logistics and freight-forwarding companies. That seems to be particularly true for UTi Worldwide (Nasdaq:UTIW). While margins and competition have long been a bear story for this supply chain service provider, investors may wonder if the stock's relatively poor performance within the transports is a sign of bad news to come or an opportunity for a relative value call.



Click the link for the full piece:
http://stocks.investopedia.com/stock-analysis/2011/UTi-Seems-To-Be-Pricing-In-The-Bad-News-UTIW-EXPD-CHRW-UPS-FDX-UNP-CSX0905.aspx

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